The crude oil on the train that crashed in Lac-Mégantic July 6 was identified for transportation as a Class 3 dangerous good, with a PG level 3, the least hazardous in that class, the TSB said. But tests the agency did on samples of oil taken from the runaway train found it had the characteristics of a Class 3, PG 2 product.

MONTREAL — The crude oil in the runaway train that derailed in Lac-Mégantic was improperly identified as less hazardous and flammable than it actually was, Canada's Transportation Safety Board has announced.

Petroleum crude oil is categorized as a Class 3 Dangerous Good, and can be divided into three packing groups, depending on the level of safety hazard.

The oil on the Lac-Mégantic train was identified for transportation from North Dakota as Packing Group III, the least hazardous in that class, the TSB said Wednesday.

But tests the federal agency did on samples of oil taken from the train found it actually had the characteristics of a PG II product, said TSB chief investigator Donald Ross. Products in PG II have a lower flashpoint — the temperature at which vapours ignite — than products in PG III.

It would have been up to Irving Oil, the company importing the oil to Canada, to ensure it was correctly identified, Ross said.

"It's important that dangerous goods in transport be properly described," Ross said. "There are people that may have to handle that, come into contact with that, and they need to know the hazards they are dealing with."

The July 6 derailment killed 47 people and spilled an estimated 5.6 million litres of crude oil. The cost of cleaning up the town, lake and Chaudière River is expected to be more than $200 million.

The train was operated by the Montreal, Maine & Atlantic Railway. Ross said tests done on samples of crude oil taken from a second MMA oil train parked in Farnham showed it was also incorrectly identified.

The TSB sent safety advisory letters to Transport Canada and the U.S. Pipeline and Hazardous Materials Safety Administration Wednesday suggesting they review the processes for suppliers and companies transporting dangerous goods to make sure they are "accurately determined and documented for safe transportation."

This is the third safety advisory letter the agency has published since the accident. The first two asked Transport Canada to review regulations requiring trains to be properly secured and that trains carrying dangerous goods are not left unattended.

Federal Transport Minister Lisa Raitt said in a statement Wednesday that she has instructed her department to examine the TSB recommendation as quickly as possible.

"If a company does not properly classify its goods, they can be prosecuted under the Transportation of Dangerous Goods Act," Raitt said.

In an statement emailed to The Gazette Wednesday, an Irving Oil spokesperson said the company continues to "offer our full support to authorities as this tragedy is investigated." The company has no further comment, the statement said.

Federal NDP transportation critic Olivia Chow said the federal government should order spot checks and safety inspections to ensure the proper labelling of dangerous goods.

Ross said it is too early to say whether the improper classification would have changed the outcome of the Lac-Mégantic disaster.

"It's a possibility that it had no effect, but I'm not there yet," Ross said, adding that the investigation is ongoing.

Under existing regulations, even if the oil had been classified properly, it wouldn't have changed how it was transported, or what kind and how many tanker cars were used, TSB investigator Ed Belkaloul said.

The TSB said the incorrect identification of the oil raises questions about the use of DOT-111 train cars to transport large quantities of flammable liquids with lower flashpoints. Both the TSB and U.S. National Transportation Safety Board have recommended improvements to DOT-111 cars, which have punctured during accidents.

According to the Railway Association of Canada, DOT-111 tanker cars produced since October 2011 to carry crude oil and ethanol have the improved safety features the regulatory agencies have suggested.

The TSB investigation will look at how the tanker cars performed in the accident, as well as the composition of the crude oil they carried, Ross said.

The TSB findings show there are serious gaps in the regulation of shipping oil by rail, Greenpeace Canada said Wednesday. The group has been calling for a ban on shipping oil in older DOT-111 tanker cars.

"We need the federal government to focus more on protecting our communities and our environment, and less on keeping transportation costs low for oil companies," spokesperson Patrick Bonin said.

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